Trading The AUD and NZD
Trading the Australia Dollar and New Zealand Dollar (AUD / NZD): It may be ‘down under’ but these currencies come out on top with one of the higher interest rates in the main international markets. The Reserve Bank of Australia is committed to upholding price stability and thereby economic strength as their long-term plan. With a governor as its head, the bank’s board consists of a deputy governor, secretary to the Treasury and six members-at-large who work toward to targeting inflation at 2-3% as part of their remit during the nine meetings annually.
Similarly, the Reserve Bank of New Zealand addresses the same issues, in the hope of maintaining a solid foundation for prices.
Both the Australian Dollar (AUD) and the New Zealand Dollar (NZD) have been a major focus for Forex traders, as the Australian and New Zealand dollars (AUD and NZD) offer the highest yields available in respect of the seven major currencies that most platforms offer. Consequently, there may be volatile activity in these pairs should de-leveraging come into play. Usually though, they trade similarly across an average 30-40 pips, comparable to the other majors. Each of them also maintains a relationship with commodities, particularly silver and gold.
